Probably, partly why they (along with Koreans) prefer white Europeans with barely sufficient English over Asian (or even black) English majors born and raised in America.
I too have heard my Asian friends complain about it. I legit don't know if Asian American's actually have this nuisance worse or if they are just more aware of it. I don't even know where to find data to prove it one way or the other.
It’s just really very hard to learn Japanese well, and also to get a good grasp on Japanese culture. The vast majority of foreigners coming to Japan never achieve fluency (from what I can tell, though if there are stats on this I’d be interested).
One friend has a half-Japanese wife and has been here about 15 years. He's finally gotten so fed up with what he feels is disrespect and alienation from a VERY large population of objectively dumber/less ambitious/less successful human beings that he's actually considering moving back to America.
One incident that set him off on a day-long tirade (he was under a LOT of stress at the time) was when he pulled up to a drive-thru to order, he made some jokes with the staff, and I'm sure the staff thought they were talking to a Japanese guy. Then he pulls up to the window....and the Japanese staff are staring at a big black Jamaican man......and they just stared, speechless...then began chatting amongst themselves about how surprised they were. They had totally forgotten their formal customs and courtesies that any service staff would say if they were interacting with a Japanese customer. He blew up, cursed them out in Japanese, demanded to see their manager, scolded the manager in Japanese, etc....
Don't get me wrong, your presence can become very much accepted and even appreciated, but you're always wai guo ren / gai jin. I'm struggling to think of a solid example right now.
I haven't lived in Taiwan. Do they call us laowai in Taiwan or is that just a mainland thing?
On the flipside, you can be classified as a foreigner even if you'd live your whole life in the country but aren't white.
In Hong Kong, for example, every Caucasian is a gweilo (lit. ghost guy).